Reserve Bank of India Governor Raghuram Rajan had to set out the second bi-monthly monetary policy for 2014-15 on June 3, playing his cards blind. Normally, by this time of the year, the Budget is announced and the task of the RBI becomes clearer. This year, because of the general election, the Budget has been scheduled for early July. As such, the RBI had a tough call to make. Given the circumstances, the RBI cannot be faulted for its somewhat emollient monetary policy stance.............
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Friday, June 13, 2014
Banking on governance
.................... There is a risk of the report getting lost in the abundance of official and non-official recommendations and suggestions on financial sector reform that are now available to the new government. On the other hand, the committee’s report might well be the blueprint that a new government that is keen on reform might consider adopting, albeit with modifications. The report has already become controversial, with major bank trade unions threatening to go on strike against its key recommendations that are centred on the dilution of government ownership in public sector banks ...........
Country's first payment bank to come up soon: RBI
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| "I know that you are not happy that we have given licence to two (entities). We will come out with guidelines on universal commercial banking, which will be not be a single window, but it will be 'on tap', |
Private banks' work culture
RBI Deputy Governor H R Khan on Thursday said chasing growth with a pressure cooker-like work culture might put private banks in a tight spot and dent their image. Khan added it might result in the young generation's dislike for banking profession............
‘Private banks must focus on retaining and managing talent’
.............Speaking at the ‘Banking, Financial Services and Insurance Conference’ organised by SBICAP Securities, Khan said that banking has become a hated profession among some youngsters. The RBI Deputy Governor’s observations are significant as they come in the backdrop of a large private sector bank reportedly issuing pink slips to about 1,200 employees. Referring to the 4Ps in banking, Khan said if a bank has excellent products, excellent processes and excellent partnerships, but not the people, then all its efforts (to grow business) will fail...................
Payments bank could cause regulatory arbitrage, SBI says
The payments bank proposed to be allowed by Reserve Bank of India will hurt existing "universal" banks as they will offer products which are cross-subsidizing other services. She also said that there would be an element of regulatory arbitrage as a payment bank would invest only be investing in government bonds. Speaking at a conference on banking and financial service organized by SBI Capital Markes, Bhattacharya said, "There is an element of cross-subsidy in services provided by a bank. The payments bank will not have to provide the cross-subsidy. We will have to find ways to.....
After weak response, RBI now plans revamped inflation bonds
The Reserve Bank of India (RBI) is planning to revamp the inflation-indexed bonds which have failed to attract retail investors. “We had launched inflation-indexed bonds (IIBs) that were not successful. We are coming out with the revised version,” RBI deputy governor HR Khan said...........
Not considering raising FII debt limit in govt debt "right now": RBI
India is not considering raising the foreign investment limit in government bonds immediately, Reserve Bank of India Deputy Governor H.R. Khan said on Thursday. "Right now there is no such discussion," Khan said, in response to a question on raising the foreign institutional investment (FII) limit in government debt, on the sidelines of a banking seminar......
Closure of public counters in RBI - Mass casual leave
United Forum of Reserve Bank Officers & Employees issues circular dated June 11, 2014........
KYC relaxation a big boost for financial inclusion
....."Currently RBI is relaxing norms to open up the bank accounts and this is the first step in the stage of financial inclusion. Once this is done the second step is going to be to ensure that these accounts remain active and made productive by using other basic and advanced financial services,"....
Non-performing policies?
...........The government and Reserve Bank of India need to consider the various pros and cons of separating NPAs from public sector banks. In the banking business, non-recoveries are a part of the process and the provided remedies are improving loan origination and writing off the unrecovered loans. The NAMC proposal also shows the weakness of the Indian banking policy formulation..........
Inflation eases but monsoon un-eases
...........Since there are upside risks to food inflation and core inflation is already ticking up, it may be a while before the Reserve Bank of India (RBI) cuts interest rates to boost growth.
Bandhan - RBI may rethink
"Prof Yunus quoting examples of Raiffiesen Bank Internationl AG, Societie Agricole SA and others has highlighted the harms of providing general banking licence to MFIs which would make them move away from serving the underserved and unserved. He has rather recommended for special banking licence to MFIs. I have also been voicing similar concerns in my responses to the action of the RBI providing banking licence to Bandhan, the MFI. If Bandhan is going to function as a full fledged commercial bank, then MF portfolio would be just one of the asset side items of the Bandhan Bank. It would just comply with the PSL requirements of RBI. In about a decade, it would also go the Raiffeisein Bank and others. Sure, this may not be the objective of the RBI in having granted banking licence to Bandhan. Hope in the light of the observations of Prof Yunus, at least now, the RBI may rethink on its decision in granting the general banking licence to Bandhan and convert it as a special licence making it to function on the lines of banks like Bancosol, Bolivia, Grameen Bank, Bangladesh etc."
- S.Santhanam
Bharatiya Mahila Bank recruiting for 200 posts of Probationary Officers 2014
Bharatiya Mahila Bank Limited has invited job applications for recruitment to the post of Probationary Officers in Junior Management Grade/Scale I (JM G/S -I). Interested and eligible candidates are required to apply for the job before June 25, 2014..............
Bank of Baroda - Appointment and Cessation of Director
...... the Central Government vide their letter Dated June 10, 2014 has appointed Smt. Surekha Marandi, CGM, RBI, as Director of Bank of Baroda vice Shri. Sudarshan Sen, CGM, RBI, with immediate effect and until further orders........
Soon, you won't need smartphone for mobile money transfers
.........Finance Minister Arun Jaitley might next month launch mobile banking services for people not using smartphones. The move is aimed at pushing financial inclusion in India and bringing down banks' cost of servicing clients. Such a service will also reduce the transaction cost for those bank customers who are forced to visit a branch every time they have to transfer money from an account to another as they do not have smartphones or internet access........
Cyber Security Of Banks In India Needs Strengthening
............RBI has also mandated establishment of Steering Committees on Information Security by Banks in India and appointment of Chief Information Officers (CIOs) for all banks in India. However, banks in India have failed to comply with the directions of RBI so far and even RBI has allowed them to take this liberty. In effect, this means that there is neither a legal framework nor any compulsion to ensure cyber security of banks in India. Naturally..............
mRUPEE partners Infibeam to launch online retail e-commerce
.....This is the first time in the industry that a dual payment gateway has been introduced to give the customer two choices for making payment from an mRUPEE wallet and/or net-banking, debit card and credit card. This service will be available to both B2C and B2B customers. Another first in the industry is that a new retailer-assisted model has been introduced to facilitate those users who are not so technology or internet savvy. This would help the customers to benefit from offers and discounts available to online user community............
Court seeks RBI’s stand on merger of Amanath, Canara banks
The Karnataka High Court on Thursday asked the Reserve Bank of India to clarify its stand on the two conditions imposed by it for the merger of loss-making Amanath Cooperative Bank with the Canara Bank...................
Madhu Kapoor can challenge Yes Bank AGM resolutions in court: HC
The Bombay high court on Thursday allowed Madhu Kapur, widow of Yes Bank Ltd’s co-founder Ashok Kapur, to challenge in court all the resolutions that are likely to be passed in the annual general meeting (AGM) of the bank on 14 June. The court was hearing a chamber summons filed by Kapur, seeking a stay on several board resolutions that have been proposed to be passed in the AGM......
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